Cairo University

Faculty of Engineering

Economics GENN221

MODEL

1A
Quiz

Allowed time 20 minutes

Student Name:-

ID:

True or false
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Economics is the study of how society allocates its unlimited resources.

With careful planning, we can usually get something that we like without having to give up something else that we like.
Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.
Government policies that improve equality usually increase efficiency at the same time.
If wages for accountants rose, then accountants leisure time would have a lower opportunity cost.
A marginal change is a small incremental adjustment to an existing plan of action.
A tax on gasoline is an incentive that encourages people to drive smaller more fuel-efficient cars.
Trade allows each person to specialize in the activities he or she does best, thus increasing each individual's productivity.
Trade can make everyone better off except in the case where one person is better at doing everything.
The invisible hand ensures that economic prosperity is distributed equally.
The government can potentially improve market outcomes if market inequalities or market failure exists.
Market failure refers to a situation in which the market does not allocate resources efficiently.
Productivity is defined as the quantity of goods and services produced from each unit of labor input.
Inflation is the primary determinant of a country's living standards.
Inflation increases the value of money.

F
F
T
F
F
T
T
T
F
F
T
T
T
F
F

Multiple Choice
16. Which of the following is an important cause of inflation in
an economy?
a.
b.
c.
d.

increases in productivity in the economy

the influence of positive externalities on the economy
lack of property rights in the economy
growth in the quantity of money in the economy

17. The historical rise in living standards of American workers

is primarily a result of
a. the influence of labor unions in America.
b. tariff protection imposed by the American
government.
c. the enactment of minimum-wage laws in America.
d. the rise in American productivity.
18. Market power refers to the
a. power of a single person or small group to influence
market prices.
b. ability of a person or small group to successfully
market new products.
c. power of the government to regulate a market.
d. importance of a certain market in relation to the
overall economy.

19. The government has just passed a law requiring that all
residents earn the same annual income regardless of work
effort. This law is likely to
a. increase efficiency and increase equality.
b. increase efficiency but decrease equality.
c. decrease efficiency but increase equality.
d. decrease efficiency and decrease equality.
20. Mitch has $100 to spend and wants to buy either a new
amplifier for his guitar or a new mp3 player to listen to
music while working out. Both the amplifier and the mp3
player cost $100, so he can only buy one. This illustrates
the basic concept that
a.
b.
c.
d.

trade can make everyone better off.

people face trade-offs
rational people think at the margin.
people respond to incentives.

Cairo University

Economics GENN221

MODEL

Faculty of Engineering

1B
Quiz

Allowed time 20 minutes

Student Name:-

ID:

True or false
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

A marginal change is a small incremental adjustment to an existing plan of action.

A tax on gasoline is an incentive that encourages people to drive smaller more fuel-efficient cars.
Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.
Economics is the study of how society allocates its unlimited resources.
Government policies that improve equality usually increase efficiency at the same time.
If wages for accountants rose, then accountants leisure time would have a lower opportunity cost.
Inflation increases the value of money.
Inflation is the primary determinant of a country's living standards.
Market failure refers to a situation in which the market does not allocate resources efficiently.
Productivity is defined as the quantity of goods and services produced from each unit of labor input.
The government can potentially improve market outcomes if market inequalities or market failure exists.
The invisible hand ensures that economic prosperity is distributed equally.
Trade allows each person to specialize in the activities he or she does best, thus increasing each individual's productivity.
Trade can make everyone better off except in the case where one person is better at doing everything.
With careful planning, we can usually get something that we like without having to give up something else that we like.

T
T
T
F
F
F
F
F
T
T
T
F
T
F
F

Multiple Choice
16. Most economists believe that an increase in the quantity of
money results in
a.
b.
c.
d.

an increase in the demand for goods and services.

lower unemployment in the short run.
higher inflation in the long run.
All of the above are correct.

17. The slow growth of U.S. incomes during the 1970s and
1980s can best be explained by
a. unstable economic conditions in Eastern Europe.
b. increased competition from abroad.
c. a decline in the rate of increase in U.S. productivity.
d. a strong U.S. dollar abroad, hurting U.S. exports.
18. Market failure can be caused by
a.
b.
c.
d.

low consumer demand.

equilibrium prices.
externalities and market power.
high prices and foreign competition.

19. When the government redistributes income from the wealthy

to the poor,
a.
b.
c.
d.

efficiency is improved, but equality is not.

both wealthy people and poor people benefit directly.
the government collects less revenue in total.
people work less and produce fewer goods and
services.
20. Sophia is planning her activities for a hot summer day. She
would like to go to the local swimming pool and see the
latest blockbuster movie, but because she can only get
tickets to the movie for the same time that the pool is open
she can only choose one activity. This illustrates the basic
principle that
a. people respond to incentives.
b. rational people think at the margin.
c. people face tradeoffs.
d. improvements in efficiency sometimes come at the
expense of equality.

Cairo University
Faculty of Engineering

Economics GENN221

MODEL

1C
Quiz

Allowed time 20 minutes

Student Name:-

ID:

True or false
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Government policies that improve equality usually increase efficiency at the same time.
Trade allows each person to specialize in the activities he or she does best, thus increasing each individual's productivity.
A marginal change is a small incremental adjustment to an existing plan of action.
Inflation is the primary determinant of a country's living standards.
Productivity is defined as the quantity of goods and services produced from each unit of labor input.
The government can potentially improve market outcomes if market inequalities or market failure exists.
Trade can make everyone better off except in the case where one person is better at doing everything.
Economics is the study of how society allocates its unlimited resources.
Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.
Inflation increases the value of money.
Market failure refers to a situation in which the market does not allocate resources efficiently.
The invisible hand ensures that economic prosperity is distributed equally.
With careful planning, we can usually get something that we like without having to give up something else that we like.
A tax on gasoline is an incentive that encourages people to drive smaller more fuel-efficient cars.
If wages for accountants rose, then accountants leisure time would have a lower opportunity cost.

F
T
T
F
T
T
F
F
T
F
T
F
F
T
F

Multiple Choice
16. The government has just passed a law requiring that all
residents earn the same annual income regardless of work
effort. This law is likely to
a. increase efficiency and increase equality.
b. increase efficiency but decrease equality.
c. decrease efficiency but increase equality.
d. decrease efficiency and decrease equality.
17. Which of the following is an important cause of inflation in
an economy?
a. increases in productivity in the economy
b. the influence of positive externalities on the economy
c. lack of property rights in the economy
d. growth in the quantity of money in the economy
18. Mitch has $100 to spend and wants to buy either a new
amplifier for his guitar or a new mp3 player to listen to
music while working out. Both the amplifier and the mp3
player cost $100, so he can only buy one. This illustrates
the basic concept that
a.
b.
c.
d.

trade can make everyone better off.

people face trade-offs
rational people think at the margin.
people respond to incentives.

19. The historical rise in living standards of American workers is

primarily a result of
a.
b.
c.
d.

the influence of labor unions in America.

tariff protection imposed by the American government.
the enactment of minimum-wage laws in America.
the rise in American productivity.

20. Market power refers to the

a. power of a single person or small group to influence
market prices.
b. ability of a person or small group to successfully
market new products.
c. power of the government to regulate a market.
d. importance of a certain market in relation to the overall
economy.

Cairo University

Economics GENN221

MODEL

Faculty of Engineering

1D
Quiz

Allowed time 20 minutes

Student Name:-

ID:

True or false
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15

Inflation increases the value of money.

Productivity is defined as the quantity of goods and services produced from each unit of labor input.
Economics is the study of how society allocates its unlimited resources.
Inflation is the primary determinant of a country's living standards.
Trade allows each person to specialize in the activities he or she does best, thus increasing each individual's productivity.
Government policies that improve equality usually increase efficiency at the same time.
A marginal change is a small incremental adjustment to an existing plan of action.
Market failure refers to a situation in which the market does not allocate resources efficiently.
With careful planning, we can usually get something that we like without having to give up something else that we like.
Trade can make everyone better off except in the case where one person is better at doing everything.
The government can potentially improve market outcomes if market inequalities or market failure exists.
If wages for accountants rose, then accountants leisure time would have a lower opportunity cost.
Choosing not to attend a concert so that you can study for your exam is an example of a tradeoff.
A tax on gasoline is an incentive that encourages people to drive smaller more fuel-efficient cars.
The invisible hand ensures that economic prosperity is distributed equally.

F
T
F
F
T
F
T
T
F
F
T
F
T
T
F

Multiple Choice
16. Market failure can be caused by
a.
b.
c.
d.

low consumer demand.

equilibrium prices.
externalities and market power.
high prices and foreign competition.

17. The slow growth of U.S. incomes during the 1970s and
1980s can best be explained by
a. unstable economic conditions in Eastern Europe.
b. increased competition from abroad.
c. a decline in the rate of increase in U.S. productivity.
d. a strong U.S. dollar abroad, hurting U.S. exports.
18. Most economists believe that an increase in the quantity of
money results in
a.
b.
c.
d.

an increase in the demand for goods and services.

lower unemployment in the short run.
higher inflation in the long run.
All of the above are correct.

19. When the government redistributes income from the wealthy

to the poor,
a.
b.
c.
d.

efficiency is improved, but equality is not.

both wealthy people and poor people benefit directly.
the government collects less revenue in total.
people work less and produce fewer goods and
services.
20. Sophia is planning her activities for a hot summer day. She
would like to go to the local swimming pool and see the
latest blockbuster movie, but because she can only get
tickets to the movie for the same time that the pool is open
she can only choose one activity. This illustrates the basic
principle that
a. people respond to incentives.
b. rational people think at the margin.
c. people face tradeoffs.
d. improvements in efficiency sometimes come at the
expense of equality.